The US dollar on the feet again after the report reveals investors on the same page as Moody’s
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- The US dollar index fell again to test the 100.00 mark.
- Traders are looking for more possible position on waiting and seeing from the members of the upcoming Federal Reserve.
- The US dollar index is stable at the present time, although reconsideration of 2022 may become possible.
US dollar index (DXY), which tracks the performance of the US dollar (USD) for six main currencies, is traded again after investors share their concerns with the reservations that MOOUDY did during the US credit reduction. Deutsche Bank poll found that 80 % of investors agree that the United States is on an unsustainable debt track, echoing with modern MOOOY data. More than half of them expect that the future crisis will push the legislators to reduce the deficit, while 26 % sees quantitative mitigation as a potential solution. Only 20 % believes that the markets will tolerate 9 % deficit or doubt that they will reach this level by 2035, according to Marketwatch reports.
Outside the United States, geopolitical tensions are picked up again. France, the United Kingdom and Canada are studying sanctions on Israel if the country does not call for its ground attack in Gaza and allows food supplies to enter the tape. Israeli Prime Minister Benjamin Netanyahu said that Israel has the right to defend itself.
Regarding the war of Russia-Ukraine, European Union leaders condemned the decline of US President Donald Trump after his two-hour call to Russian President Vladimir Putin. Despite the bold allegations that a deal will take place within days after it has become a president and that a peace agreement will not be possible without the United States, President Trump said that the United States will retract any other talks by saying, “It is not our war to deal with,” Bloomberg said. The disclosure adds to more credibility, and reaches the value of the US dollar.
In a relatively quiet week in terms of economic data, merchants are preparing for more comments from Federal Reserve officials (Fer) on Tuesday after the hawk tone is mostly of the two.
Daily market engine: sticky fears
- The markets reduce the US dollar to further because US President Trump does not seem to be inappropriate to resolve the Ukraine disaster Russia. After the two -hour call with Russian President Putin, President Trump said that the talks between the European Union, Russia and Ukraine will begin, without any military support or linked to the sanctions in order to accelerate the peace process, according to Bloomberg’s reports.
- An army of speakers of the Federal Reserve stands ready on Tuesday dry in terms of US economic data:
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- At 13:00 GMT, Thomas Parkin, President of the Richmond Federal Reserve, talks about growth in rural societies at the investment conference in rural America in Ronok, Virginia. No comments have been made on the Federal Reserve Policy.
- At 17:00 GMT, the Federal Reserve Chairman at St. Luis Alberto is a peaceful economic club for Minnesota on the campus of Minnesota.
- Close at 21:00 GMT, the governor of the Fed, Adriana Kogarler, offers a letter to start at the start of the Berkeley 2025 economy.
- At 23:00 GMT, the Federal Reserve at Atlanta Rafael Bustic talks about a committee with other heads of reserve bank at the 2025 Financial Market Conference in Atlanta, Florida.
- At the same time, the Federal Reserve in San Francisco Mary C Daly and the Federal Reserve in Cleveland Beth M. Dame in moderate questions and answers.
- The shares are mixed on Tuesday, as European stocks fell after Germany Dax Dax took out at another level at all. American stocks are fighting, a decrease of 0.50 % the day after the US bell.
- The CME Fedwatch tool shows the opportunity to reduce the interest rate by the Federal Reserve at the June meeting by only 8.6 %. Moreover, the July 30 Resolution sees the chances that the prices be less than the current levels by 33.1 %.
- US revenues are trading for 10 years about 4.49 %, and they rose back while the prices of American bonds decrease.
Technical analysis
The US dollar index loses some shine on Tuesday. After creditworthiness and the issue of its safe situation due to a reduction in credit rating, the fact that President Trump is away from any other attempts to end the war between Russia and Ukraine as another component of merit. The fact that the Trump administration may turn or even rotate in any issue will adhere to the feelings of trading when considering how to deal with the US dollar.
On the upper side, 101.90 is the first great resistance again because it was already a pivotal level throughout December 2023 and as a base to form an inverted head (H & S) during the summer of 2024. The simple moving average is enhanced for 55 days (SMA) at 101.94 strong resistance. If the bulls pushed the dollar to DXY up, the level of 103.18 axis plays its role.
As for support, the rising trend and support level at 100.22 is under pressure and can be attracted at any moment if more selling pressure appears. An unavoidable step can be achieved towards a general decrease to 97.91 out of 97.91 and the axial level of 97.73. Moreover, gentle technical support comes relatively at 96.94 before considering the lower levels of this new price range. This will be at 95.25 and 94.56, which means its lowest fresh levels that have not been seen since 2022.
US dollar index: daily chart
Common questions about GDP
The GDP (GDP) measures its economy growth rate over a certain period of time, usually a quarter. The most reliable numbers are those that compare the GDP to the previous quarter, for example, Q2 of 2023 against Q1 for the year 2023, or to the same period in the previous year, for example Q2 for the year 2023 against Q2 for the year 2022. However, these can be misleading, if temporary shocks affect growth in one quarter but it is unlikely to continue throughout the year – as happened in the first quarter From 2020 in the outbreak of the roaming epidemic, when the growth decreased.
The result of the high gross domestic product is generally positive for the nation’s currency because it reflects an increasing economy, which is likely to produce goods and services that can be exported, as well as attracting higher foreign investments. In the same manner, when the gross domestic product falls usually it is negative for the currency. When the economy grows, people tend to spend more, which leads to inflation. Then the central bank in the country must put interest rates to combat inflation through the side effect to attract more capital flows from global investors, thus helping the local currency to estimate it.
When the economy grows and the gross domestic product is transmitted, people tend to spend more than inflation. Then the central bank in the country must put interest rates to combat inflation. High interest rates are negative for gold because it increases the costs of keeping gold in exchange for placing money in the cash deposit account. Therefore, the rate of GDP growth is usually the highest declining gold price factor.
